Under Tata, BigBasket readies super-app, instant delivery

When Hari Menon founded online grocery store BigBasket in 2011, he took a very conventional approach to building a new-economy business. He ploughed in treasure and time to create company warehouses, sourcing facilities and order fulfilment centres, an asset-heavy model that many rated as unsustainable.

Menon felt vindicated as BigBasket became the leader in the tough e-grocery market, withstanding several rounds of competition from well-funded players. The biggest form of validation came in May last year when Tata bought a 64% stake, valuing the company at $2 billion. The sceptics now agree that BigBasket’s value chain propelled it this far.

Tata’s backing changes a great deal for BigBasket, giving Menon the latitude to make bolder bets such as instant delivery and offline retail expansion. He is already giving touches to a super-app — the singular point for an array of services.

“We don’t want to miss out on any game,” the 59-year-old CEO told The CapTable. 

His eagerness to expand chimes with the upswing in the grocery sector, with online ordering expected to take a larger slice of the overall retail market.